Another Economic Rant

Day 2,599, 17:37 Published in USA USA by Kendra Barger

I just took a look at the eRepublik forum today and almost laughed my ass off reading out all the ideas to fix the Overstock problem. I saw all sorts of answers but none of them made any sense to me.

I kept seeing talk of a need to "boost" the economy. Who ever came up with that thought needs to take a second look at the current economy. As far a product prices and product supply the economy is past its peak and actually needs a reduction not a boost. As far as wages and employment go compared to what everything was back in 2010 when I first got on this game wages are up 550% and employment is up 300%.

All that is good and all but Profit from companies is DOWN almost 1500% because wages are 300X what companies are making in profit off what each employee is making.

I have only been able to think of 2 truly viable solutions.

1) We go back to the old Resource layout that made it so that Each raw material resource was used by a specific level of production facility (the grain farm produce the raw materials for the Q1 food factory, the fruit farm produced the raw materials for the Q2 food factory, etc.) This would decrease the supply on the market in both raw materials and final products as people would have to the correct raw materials to fuel their factories which right now run on any level of raw material. 40-60% of the raw materials currently on the market are produced at Q1-Q3 levels and are being used to produce Q5-Q7 products. Going back to the old system would end up making the cost of the Q4-Q7 products increase greatly, but so would the demand for the Q1-Q3 products so the huge amounts of them that are currently flooding the market because everyone is buying the higher level products would disappear.

2) the second option is to have the admins buy up 40% of the current market stock and reintroduce the Job tier system that made it so that people level 1-10 could only work in Q1 jobs, people level 10-20 Q2 job, and so on. This would also fix the wage issue as it is only profitable for managers of Q1 companies if the employees are being payed less than $25 so (at current product prices) if the product prices end up increasing then the wages can increase to but to keep each job level profitable employers would be forced to actually reduce their wages to lower level or face never making a profit. As you leveled up and started working at the higher Q level jobs your wages would go up because the higher level stuff sells at a higher price.

As long as the admins do one or the other and NOT BOTH like it was originally set up they should be okay. In the original economic setup they had both of those going at the same time and the economy was crashing so they completely did away with all of it and introduced the current system which in my opinion was their first economic mistake. They should have kept either the division in raw materials or the division in job levels because they went from a crashing economy to and economy with and inflation rate of almost 120%. The last time they tried to curb the inflation rate the admins ended up buying up almost 60% of the products that were on the market (what equated to almost $18 Million).

I am ending this rant here even though I have this gut feeling that I am forgetting something so look for a future rant as there will probably be at least 1 more.